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NEW YORK ( TheStreet) -- The markets haven't crashed for a reason, Jim Cramer told his "Mad Money" TV show viewers Tuesday, and that's because there are plenty of reasons to still own stocks. There is no panic in the air, he said, as many are still hopeful for a deal that can avert the fiscal cliff.
Cramer said there's a new feeling in Washington, one that says our politicians better not stand in the way of a budget deal or they'll be called out and chastised by their party and their constituents. No one wants higher taxes, massive layoffs and lower stock prices, Cramer said, which is why he's keeping spaces on his "Wall of Shame" for any congressman that refuses to cooperate.So why haven't stock prices cratered in the meantime? Cramer said there are many reasons. Many investors simply aren't aware of drastic consequences if a deal is not reached, while others have their investments in IRAs and other tax-favored accounts that may not be affected by the fiscal cliff. Those investors are buyers into weakness and help provide a cushion for the markets, Cramer said. Then there are the earnings, strong earnings, from the likes of Home Depot (HD - Get Report) and Dicks Sporting Goods (DKS - Get Report), which prove that Americans are still spending, especially on their homes. Other big moves, including from biotechs like Celgene (CELG) and Gilead Sciences (GILD), are hard to pass up, Cramer continued. In the end, being out of the market when a deal is reached would be a huge mistake, Cramer said, as even a bad outcome is better than no outcome at all. That's why at the beginning of the Iraq war in 2003, stocks rallied as the troops crossed the border, because after months of waiting and anticipation, a resolution was finally at hand. All of these are reasons to stay in the markets, Cramer concluded, and not to panic as the wrangling in Washington gets under way.